How does a currency depreciation affect balance of payments


Problem

1. How does a currency depreciation affect the balance of payments? When might a currency depreciation intended to correct a current account deficit fail?

2. Compare and contrast the relative advantages and disadvantages of adopting floating or fixed exchange rate regimes.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: How does a currency depreciation affect balance of payments
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